Canada Inflation Research Brief

Canada’s inflation backdrop remains stable. Headline CPI remained at 2.2 per cent year-over-year in November, coming in slightly below consensus expectations. While food and gasoline prices rose on the month, underlying inflation was notably subdued across most categories. Both CPI-trim and CPI-median fell to 2.8 per cent, marking the first time since May that Canada’s preferred core measures have simultaneously stayed below 3.0 per cent. At the same time, the average three-month annualized rate of these core readings was down to just 2.3 per cent. Although progress varies across categories, the overall trend suggests easing domestic inflation momentum rather than renewed acceleration, which is mainly positive for Canada’s interest rate outlook.